(Alliance News) - Sopheon PLC on Monday said it expects to report an increase in revenue, as secured revenue rises by a fifth.
Sopheon shares were up 11% trading at 692.00 pence per share on Monday morning in London.
The Surrey, England-based enterprise software provider said it expects 2022 revenue of USD36.5 million, increasing 6.4% from USD34.3 million a year ago and in line with market expectations.
The company added that it expects to report annual recurring revenue at the end of 2022 of USD24.3 million, up 17% from USD20.7 million the year prior. The company said adding annual recurring revenue to contracted consulting services brings revenue visibility to USD28 million, up 20% from to USD23.4 million a year ago.
Sopheon said adjusted earnings before interest, tax, depreciation and amortisation are expected to be USD7 million, an increase of 17% from USD6 million a year ago, "comfortably exceeding market expectations". The company said the increase in Ebitda was partly due to cost management efforts.
The company noted that net cash at December 31 was USD21 million, down 13% from USD24 million a year ago. Sopheon said the drop in cash was a result of a decrease in the dollar value of euro and sterling cash deposits, the impact of acquisition payments, and the extended payment terms for its US Navy contract.
During 2022, Sopheon integrated two acquisitions, and launched three software-as-a-service products - Acclaim Ideas, Acclaim Projects and Acclaim Products - expanding its addressable market by USD2 billion.
Chair Andy Michuda said: "I am very proud that the company has delivered such strong commercial and financial performance - while also absorbing two acquisitions, transitioning our core business model and launching a set of new products.
"We have now expanded our end-to-end capability to operationalize innovation, offering immediate value to both corporate executives as well as their supporting cross-functional teams, expanding our addressable market."
By Harvey Dorset, Alliance News reporter
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